Bahrain: 10% stake in Falcon Cement snapped up

Abu Dhabi Financial Group (ADFG) will buy a 10 per cent of Bahrain-based Falcon Cement Company from the Bahraini Islamic investment bank GFH Financial Group. The US$120m integrated cement plant has a production capacity of 0.35Mta, which is expected to rise to 0.85Mta by the end of 2016 after a second production line is added. The plant manufactures ordinary Portland cement and sulphate resistant cement and is located in Hafirah.

The deal was carried out through Integrated Capital, the capital markets arm of ADFG. ADFG said it was also interested in underwriting a potential IPO for the cement company. The deal comes a month after the Abu Dhabi firm raised its stake in GFH Financial Group from 7.4 to 10 per cent, making it the company’s largest shareholder.

“We have a keen interest in GFH Group’s business and are pleased to further our active involvement in the group through this landmark transaction," said Jassim Alseddiqi, the ADFG chief executive.